Phase 1 is about minimizing what your debt costs you so you can start building the runway to a balanced life. That means optimizing your expenses, finding ways to add income on a capped salary, and picking the student loan strategy that fits your situation. The goal is a net worth of $0 as soon as possible.
Step 1: Save your first $1000
Your minor emergency fund. Covers flat tires and vet bills without backsliding into credit card debt. Takes an afternoon to set up. Read More →
Step 2: Pay off high-interest debt (above 8%)
Anything above 8% — credit cards, personal loans — is bleeding faster than any investment can grow. Clear it before touching the student loans. Read More →
Step 3: Capture your full employer 401k match
Contributing enough to get the full 401(k) or 403(b) match is a 100% guaranteed return. The one exception to paying off debt before investing. Read More →
Step 4: Build a 3-6 month emergency fund.
Three to six months of essential expenses in a high-yield savings account. The cushion that keeps a layoff or injury from derailing everything else. Read More →
Step 5: Get insured
This is the step most clinicians skip, but it's arguably one of the most important. Protect your income if something goes wrong. Your employer's disability plan is most likely insufficient. Read More →
Step 6: Pay off remaining debt (student loans)
The biggest financial decision of your early career. Choose between aggressive payoff, PSLF, or income-driven repayment. The right path depends on where you work, how much you owe, and your future life plans. Read More →
Pick Your Repayment Plan:
- Student Loan Repayment Guide for PTs, OTs, and SLPs - Learn about repayment strategies and run your own numbers to pick the best option for your life goals.
Aggressive Loan Payoff Strategies
- Pay it off ASAP - Strategies to pay off your loans rapidly and minimize interest paid.
- When to Refinance (And When Not To) - How refinancing can save you thousands and when to avoid it.
- Our Vetted Lenders - Refinancing lenders who meet the needs of rehab clincians.
Public Service Loan Forgiveness (PSLF)
- PSLF: The Wealth-Building Repayment Strategy - Get your federal loans forgiven in 10 years while building a retirement nest egg at the same time.
- PSLF and Marriage - how to file your taxes to maximize savings.
- AGI Optimization - Reduce your Adjusted Gross Income through strategic investing to reduce your monthly loan payment under PSLF.
Income-Based Repayment (Non-PSLF)
Why Income-Based Repayment is now a Financial Trap
Continue to Phase 2 - Build The Runway→